review of literature - shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/2485/11/11_chapter...

40

CHAPTER 3

REVIEW OF

LITERATURE

41

3 REVIEW OF LITERATURE

31 Introduction

India is in the second largest in volume of output in agriculture sector Certain

connected sectors of the agricultural sector have played a major role in the development

of the Indian economy by providing employment to a number of people in the Dairy

Forestry Fishing Poultry and Medico herbs industries Production volume has gone up in

Indian agriculture at a consistent rate since the 1950s Much of this improvement can be

credited to the various five-year plans that were instituted for the development of Indian

agriculture Developments in irrigation processes as well as various modern technologies

used have contributed to the overall improvement of agricultural processes

Substantial amounts of research and development have been carried out in the

agricultural sphere in India by organizations such as the Indian Agricultural Research

Institute the Indian Agricultural Research Statistics Institute and the Indian Council of

Agricultural Research Result of all Now India is rated as one of the top economies in the

world in terms of the purchasing power parity of the gross domestic product

32 Indian Village System

There is no village in India however mean that has not a rich stala- purana or

legendary history of its own - Raja Rao Kanthapura

At the edge of the city begins the great ocean of Indialsquos villages ndash Shrilal Shukl

Rag Darbari

The village in India it is believed epitomized essence of Indian civilization as it

is considered a repository of traditional mores and folkways A historical review of the

village as a community or of village studies has been touched upon briefly here

The village from the earliest times to the nineteenth Century

Studies in social evaluation have shown how nomadism was given up for village

life once settled agriculture became a way of life In India the village (gram) finds

mention in ancient texts and latter epics It is distinguished from the city (nagar) and the

town the fortress (pur) while all three stand in opposition to habitation of recluses in the

forests (aranta) City life was not a major feature of the Vedic Age as the economy was

mainly pastoral Villages were however ubiquitous According to Basham the Indian

42

village had not changed much from what it was like during the first millennium to what it

was in the mid- twentieth century Then as now hellip the villagers formed a self conscious

communitylsquo (1954 150)1

The Arthashashra (400BC- 200 Ad) provides us with a classification of the kinglsquos

duties to the administrative affaires of the village For example new village could be

bought into existence by enabling people to migrate from one place to another These

villages could be built on old ruins or at new sites The size of a village and the

composition of the population were laid down both in ethnic and occupational terms

Distribution and usage of land was also defined The roles of headman or guardian of the

village and of the king as the ultimate protector were outlined (Shamsastry 1967)

The epic Mahabharata (400BC-400AD) similarly speaks of types of habitation

and settlements interrelations between and within villages and identifies villages for

purposes of governance

Manusmruti the book of Brahminical laws (100AD-300AD) classifies villages on

terms of their size and habitation (Buhler 1886)

The fact that the presence of the village can be traced far back in Indialsquos history creates a

sense of timelessness and continuity Al-Birunilsquos celebrated Kitab-al- Hind (early

eleventh century) gives us an account of the caste-occupation based village organization

in the medieval times These were seemingly times of great flux that resulted from

population movements (Al- Biruni 1983 Chattopadhyaya 1990)

Babur the founder of the Mughal Empire in the middle of the sixteenth century

commentated on the rapid appearance and disappearance of hamlets and villages and

indeed of towns too (Rizvi 1993 204-216) T the same time villages with growing

populations and economic prosperity grew into towns

A detailed study of the growth and character of the village from the sixteenth to

the eighteenth centuries has been discussed by Habib (1999) in his book on the agrarian

system of Mughal India He relies on documents from practically all part of India and

although his focus is peasant rights and tenancy the information indirectly brings out the

nature of social and cultural life in those times

Karl Marks contributed extensively to the making of the popular images of the

Indian villages in that period Adopting an evolutionary perspective he placed the village

43

in Asia just above the primitive and the barbarian social forms and describes it as a self-

contained community For Marx the Indian village was the mainstay of a stagnant

oriental social system where property was held in common by a whole village and class

conflict was absent For him Indian village represented a distinct autarchic economic

system - Asiatic mode of production- combining agriculture with manufacture

For Marx hellipthese idyllic village communitieshellip Restrained the human mind

within the smallest possible compass making it the unresisting tool of superstition

enslaving it beneath traditional rules depriving it of all grandeur and historical

energieshelliplsquo (1853 a 94) The Indian village is was for Marx passive and un-resistant to

what was thrust upon it While he was critical of the stagnant nature of the village

economy he also accused the British intruderlsquo of breaking up the Indian handloom and

destroying the spinning wheel Writing letter in 1853 on European colonialism Marx did

however endorse the role of the empire as being the savior of the Asian masses without

whom there would be no emancipation By introducing capitalist enterprise he believed

that the British would annihilate the old political economy (1853c) and lay instead the

foundation of a modern society and a new land holding system in India

Village studies in late nineteenth and Twentieth Century

The social realities of the village and its relationship with the regional social

environment have been the focus of many debates in both colonial and post colonial

literature Such debates have led to a refinement in the methods of data collection

especially in fieldwork as well as developments in the disciplines of sociology and social

anthropology over the twentieth century Under British rule concrete steps were taken to

describe and classify the village community This was necessitated by administrative and

revenue needs as also the desire to understand the socio economic conditions of the

people who were being governed Census reports as early as the 1880lsquos along with

gazetteers district handbooks and regional surveys brought together varied information

on the village community

Colonial literature is replete with images that are now recognized as stereotypical and

often mythic such as belief in the self sufficiency of the village or its being a little

republiclsquo For instance a House of Commences report of 1812(Campbell 1852 84-5)

described the typical village as occupying large acres of both waste and arable land

44

having offices such as that of the headman revenue collector accountant and police

boundary man and with an internal economy that largely unchanged Besides being a

unit of administration the village was also the prime source of revenue collection often

bordering on the extreme Habib similarly writes about the peasant being bound to land

like a European serf and the revenue officials being able to coerce him (1999 130)

Already by the nineteenth century the Indian village was described as quintessentially

Asianlsquo and as being truly rural in nature Sir Charles Metcalfe described them in the

1810lsquos as self contained little republicslsquo just as Sir Thomas Munro saw them as mini

republicslsquo both stressed the immutability of the village in the face of changes such as

those accompanying modernization The late nineteenth century saw the work of

scholars such as Sir Henry Maine and B H Baden Powell who wrote specifically on the

nature of family and the economy The work of these scholars may be regard as an early

attempt at empirical research into the rural way of life

Maine described the village as the least destructible institution of Indian society

It was clan based and the patriarchal household was its bedrock He also offered a

typology of villages depending on the nature of the holdings For him the villager only

had a share in the village land and its produce For Maine as for Marx the cast system

was the chief obstacle to change and growth in rural India Beden- Powell on the other

hand was skeptical about their being a category describable as the typical Indian Village

He identified two types of villages- the joint and ryotwari2

and believed that the former

had its roots in Aryan social forms and the little in the Dravidian

The administrative information gathering needed a shift of gears to more micro

level issues and their analysis making a new phase in colonial village studies was soon

realized Several commissions were set up by the British to investigate the deteriorating

agrarian situation Reports on the status of rural settlements were drawn up In 1901 an

ethnographic survey of India was attempted as a part of the 1901 census

Recognizing the importance of the sense of community at the village level Gandhi

asserted that the freedom struggle would be meaningless unless the rural masses that

lived in abject poverty were to benefit from the efforts to build a new India An Anthony

Parel put it- No Indian thinker had a better grasp of the truth that Swaraj would mean

little for India if the lives of the poor in the villages saw no significant improvementhellip In

45

a country so overpopulated and so heavily dependent on agriculture the villages held the

key to economic and political development For Gandhi Indialsquos soul lived in her villages

where it survived through the cottage industry While holding onto the rural community

as the nucleus of an economically viable and socially just society he acknowledged that

the villages as they existed in his time left much to be desired from both the economic

and moral points of view He asserted If the village perishes India will perish toolsquo

Gandhi also believed that independence had to begin at the grassroots From this insight

however he proceeded to idealize the village almost echoing colonialist discourse Thus

to him every village would be a republic or panchayat self sustained and capable of

managing its own affairs Yet he also acknowledged that what he sought was really a

dream Not everybody agreed with Gandhilsquos point of view Dr B R Ambedkar was one

of few who described the village as a cesspool of factionalism and den of iniquitylsquo In a

recent work Alok Bhalla and Peter Bumke echo Ambedkar when they write of the

village as a place with hellip A life mired in customs which carry the stink of ageslsquo

The idea of extension of the village into wider society and vice versa was central

to many village studies in the 1940lsquos and 1950lsquos The work of scholars like Milton Singer

and Mckim Marriott introduced the idea of the continuum into Indian village studies

Mirriott writing on aspects of village life in the 1950lsquos spoke of how the ties that related

the village to the outside world also brought wider society to the village He called these

processes of universalisation (elements of village culture being incorporated into a wider

regional or even larger society) and parochialization (cultural element of pan-Indian

nature filtering down to the village level through various modes of communication such

as story telling and folk drama)

Thus several studies came to identify how cast relations based on economic

interdependence and social relations based on marriage and other kind of social

interaction extended village links beyond village boundaries

Every village according to those who live there and those who have described it

has a history- oral as well as recorded Records were made under British rule and before

for purpose of governance and revenue collection by designated patwaries of the state

Village often also had their own village accountants and record keepers who took note of

the landholdings and their distribution to enable jurisdiction for example in case of

46

dispute over land use Genealogists also kept village records that were useful in identify

formation and matters of kinship and marriage Most of the past of the village and its

history has been orally transmitted The pattern and recall of an event was reflective of

the social identify of the speaker and is based on his caste or community For villagers

their past is differently shaded depending on their socio-cultural identities which also

color their perception of events differently

The agrarian structure acquired different forms regionally such as that based on

jotedari in West Bengol (Beteill 1974) and kuthakai tendency in the Tamil regions

(Gough 1981) The jotedars were like mirasdars of Tanjore and bhomiyas of Rajasthan

forming a category that varied within Bengal in wealth and income They ranged from

small landowners to share croppers joint family the members of which even when

divided into number of households live together in the village and own property in

common The social values that underpin family life in a village also define the position

of women and their roles in a largely patriarchal set up Use of kinship terminology

within the family and in the village between castes and individuals is reflective of social

status and inequality

All of these principles generate a set of values practices and interests that govern

the behaviour relations expectations and attitudes of villagers It is these traditionally

prescribed patterns of social relationship of inequality the economic classes of the

agrarian hierarchy the local power structures and the ritual values that have undergone

gradual change over the decades The Indian village opened up to the wider regional and

socio-cultural environment through the processes of modernization and development that

followed in the post independence period

Village Development and Change

The post- independence period has characterized by policy decisions that have

pointed to the village being a template for nation building This was best illustrated by

grassroots development projects most notably the Community Development Programme

(CDP) in the 1950lsquos These projects had important consequences for social economic

and political relations and life at the village level This was reflected in the changes in

village social structure that took place over several decades following independence The

CDP attempted to introduce reform at the village level that focused on issues such as

47

primary health education and agriculture The most crucial aspect of this project was

that it aimed at cooperative effort through peoplelsquos participation The programme was

also important as it initiated a phase in interdisciplinary research and investigation

S C Dube writing on the CDP in 1958 saw the programme as a pioneering

venture but cautioned that efforts had to be sustained to keep up the momentum and

interest of the rural population in accepting this change Understanding the impact of the

CDP would refocus attention on the role of the individual in changing village life and

spell a weakening of the hold of the caste system over rural social organisation By

shifting focus from action as an outcome of ideology to individual action at the

grassroots one would be recognizing the role of human agency in self upliftment

33 Rural Economy

The economy of India is the twelfth largest in the world by market exchange rates

and the fourth largest in the world by GDP measured on a purchasing power parity (PPP)

basis3

The country was under socialist-based policies for an entire generation from the

1950s until the 1980s The economy was characterised by extensive regulation

protectionism and public ownership leading to pervasive corruption and slow growth 4

Since 1991 continuing economic liberalisation has moved the economy towards a

market-based system By 2009 India had prominently established itself as the worlds

second-fastest growing major economy5 and6

Agriculture is the predominant occupation in India accounting for about 60 of

employment The service sector makes up a further 28 and industrial sector around

127

The labor force totals half a billion workers For output the agricultural sector

accounts for 17 of GDP the service and industrial sectors make up 54 and 29

respectively Major agricultural products include rice wheat oilseed cotton jute tea

sugarcane potatoes cattle water buffalo sheep goats poultry and fish Major industries

include textiles chemicals food processing steel transportation equipment cement

mining petroleum machinery information technology enabled services and software 8

48

Economic history of India

Indias economic history can be broadly divided into three eras beginning with

the pre-colonial period lasting up to the 17th century The advent of British colonisation

started the colonial period in the 17th century which ended with independence in 1947

The third period stretches from independence in 1947 until now

i Pre-colonial

The citizens of the Indus Valley civilisation a permanent and predominantly

urban settlement that flourished between 2800 BC and 1800 BC practiced agriculture

domesticated animals used uniform weights and measures made tools and weapons and

traded with other cities Evidence of well planned streets a drainage system and water

supply reveals their knowledge of urban planning which included the worlds first urban

sanitation systems and the existence of a form of municipal government9

Silver coin

minted during the reign of the Gupta king Kumara Gupta I (AD 414ndash55)

The 1872 census revealed that 993 of the population of the region constituting

present-day India resided in villages 10

whose economies were largely isolated and self-

sustaining with agriculture the predominant occupation This satisfied the food

requirements of the village and provided raw materials for hand-based industries such as

textiles food processing and crafts Although many kingdoms and rulers issued coins

barter was prevalent Villages paid a portion of their agricultural produce as revenue to

the rulers while its craftsmen received a part of the crops at harvest time for their

services 11

Religion especially Hinduism and the caste and the joint family systems played

an influential role in shaping economic activities 12

The caste system functioned much

like medieval European guilds ensuring the division of labour providing for the training

of apprentices and in some cases allowing manufacturers to achieve narrow

specialization For instance in certain regions producing each variety of cloth was the

specialty of a particular sub-caste The estimates of the per capita income of India (1857ndash

1900) as per 1948ndash49 prices 13

49

Indias pre-colonial economy is mostly qualitative owing to the lack of

quantitative information One estimate puts the revenue of Akbars Mughal Empire in

1600 at pound175 million in contrast with the total revenue of Great Britain in 1800 which

totalled pound16 million14

India by the time of the arrival of the British was a largely

traditional agrarian economy with a dominant subsistence sector dependent on primitive

technology It existed alongside a competitively developed network of commerce

manufacturing and credit After the decline of the Mughals western central and parts of

south and north India were integrated and administered by the Maratha Empire The

Maratha Empires budget in 1740s at its peak was Rs 100 million After the loss at

Panipat the Maratha Empire disintegrated into confederate states of Gwalior Baroda

Indore Jhansi Nagpur Pune and Kolhapur Gwalior state had a budget of Rs 30M

However at this time British East India Company entered the Indian political theatre

Until 1857 when India was firmly under the British crown the country remained in a

state of political instability due to internecine wars and conflicts 15

ii Colonial

In 1945 Calcutta which was the economic hub of British India saw increased

industrial activity during World War II Company rule in India brought a major change in

the taxation environment from revenue taxes to property taxes resulting in mass

impoverishment and destitution of majority of farmers and led to numerous faminesThe

economic policies of the British Raj effectively bankrupted Indias large handicrafts

industry and caused a massive drain of Indias resources

Indian Nationalists employed the successful Swadeshi movement as strategy to

diminish British economic superiority by boycotting British products and the reviving the

market for domestic-made products and production techniques India had become a

strong market for superior finished European goods This was because of vast gains made

by the Industrial revolution in Europe the effects of which was deprived to Colonial

India The Nationalists had hoped to revive the domestic industries that were badly

effected by polices implemented by British Raj which had made them uncompetitive to

British made goods An estimate by Cambridge University historian Angus Maddison

reveals that Indias share of the world income fell from 226 in 1700 comparable to

50

Europes share of 233 to a low of 38 in 1952 16

It also created an institutional

environment that on paper guaranteed property rights among the colonizers encouraged

free trade and created a single currency with fixed exchange rates standardized weights

and measures capital markets It also established a well developed system of railways

and telegraphs a civil service that aimed to be free from political interference a

common-law and an adversarial legal system 17

Indias colonization by the British

coincided with major changes in the world economymdashindustrialisation and significant

growth in production and trade However at the end of colonial rule India inherited an

economy that was one of the poorest in the developing world 18

with industrial

development stalled agriculture unable to feed a rapidly growing population India had

one of the worlds lowest life expectancies and low rates for literacy

The impact of the British rule on Indias economy is a controversial topic Leaders

of the Indian independence movement and left-nationalist economic historians have

blamed colonial rule for the dismal state of Indias economy in its aftermath and that

financial strength required for Industrial development in Europe was derived from the

wealth taken from Colonies in Asia and Africa At the same time right-wing historians

have countered that Indias low economic performance was due to various sectors being

in a state of growth and decline due to changes brought in by colonialism and a world

that was moving towards industrialization and economic integration 19

iii Independence to 1991

Indian economic policy after independence was influenced by the colonial

experience (which was seen by Indian leaders as exploitative in nature) and by those

leaders exposure to Fabian socialism Policy tended towards protectionism with a strong

emphasis on import substitution industrialization state intervention in labor and financial

markets a large public sector business regulation and central planning[38]

Five-Year

Plans of India resembled central planning in the Soviet Union Steel mining machine

tools water telecommunications insurance and electrical plants among other industries

were effectively nationalized in the mid-1950s 20

Elaborate licences regulations and the

51

accompanying red tape commonly referred to as Licence Raj were required to set up

business in India between 1947 and 1990 21

Jawaharlal Nehru the first prime minister followed by Indira Gandhi formulated

and oversaw economic policy They expected favorable outcomes from this strategy

because it involved both public and private sectors and was based on direct and indirect

state intervention rather than the more extreme Soviet-style central command system 22

The policy of concentrating simultaneously on capital- and technology-intensive heavy

industry and subsidizing manual low-skill cottage industries was criticized by economist

Milton Friedman who thought it would waste capital and labour and retard the

development of small manufacturers 23

The Rockefeller Foundations research in high-yielding varieties of seeds their

introduction after 1965 and the increased use of fertilizers and irrigation are known

collectively as the Green Revolution which provided the increase in production needed

to make India self-sufficient in food grains thus improving agriculture in India Famine

in India once accepted as inevitable has not returned since the introduction of Green

Revolution crops and the reduction of cash-crops that dominated India during the British

Raj

iv After 1991 Economic liberalization in India

In the late 80s the government led by Rajiv Gandhi eased restrictions on capacity

expansion for incumbents removed price controls and reduced corporate taxes While

this increased the rate of growth it also led to high fiscal deficits and a worsening current

account The collapse of the Soviet Union which was Indias major trading partner and

the first Gulf War which caused a spike in oil prices caused a balance-of-payments crisis

for India which found it facing the prospect of defaulting on its loans India asked for a

$18 billion bailout loan from IMF which in return demanded reforms 24

In response Prime Minister Narasimha Rao along with his finance minister

Manmohan Singh initiated the economic liberalisation of 1991 The reforms did away

with the Licence Raj (investment industrial and import licensing) and ended many public

52

monopolies allowing automatic approval of foreign direct investment in many

sectors[46]

Since then the overall direction of liberalisation has remained the same

irrespective of the ruling party although no party has tried to take on powerful lobbies

such as the trade unions and farmers or contentious issues such as reforming labour laws

and reducing agricultural subsidies Since 1990 India has emerged as one of the fastest-

growing economies in the developing world during this period the economy has grown

constantly but with a few major setbacks This has been accompanied by increases in life

expectancy literacy rates and food security

While the credit rating of India was hit by its nuclear tests in 1998 it has been

raised to investment level in 2007 by SandP and Moodys In 2003 Goldman Sachs

predicted that Indias GDP in current prices will overtake France and Italy by 2020

Germany UK and Russia by 2025 and Japan by 2035 By 2035 it was projected to be the

third largest economy of the world behind US and China 25

Agriculture in India

Slow agricultural growth is a concern for policymakers as some two-thirds of

Indialsquos people depend on rural employment for a living Current agricultural practices are

neither economically nor environmentally sustainable and Indias yields for many

agricultural commodities are low Poorly maintained irrigation systems and almost

universal lack of good extension services are among the factors responsible Farmers

access to markets is hampered by poor roads rudimentary market infrastructure and

excessive regulation - World Bank India Country Overview 2008 26

According to India Priorities for Agriculture and Rural Development by World

Bank Indias large agricultural subsidies are hampering productivity-enhancing

investment Overregulation of agriculture has increased costs price risks and uncertainty

Government interventions in labor land and credit markets are hurting the market

Infrastructure and services are inadequate

Illiteracy general socio-economic backwardness slow progress in implementing land

reforms and inadequate or inefficient finance and marketing services for farm produce

53

The average size of land holdings is very small (less than 20000 msup2) and is subject to

fragmentation due to land ceiling acts and in some cases family disputes Such small

holdings are often over-manned resulting in disguised unemployment and low

productivity of labour

Adoption of modern agricultural practices and use of technology is inadequate

hampered by ignorance of such practices high costs and impracticality in the case of

small land holdings

World Bank says that the allocation of water is inefficient unsustainable and

inequitable The irrigation infrastructure is deteriorating Irrigation facilities are

inadequate as revealed by the fact that only 526 of the land was irrigated in 2003ndash04

which result in farmers still being dependent on rainfall specifically the Monsoon season

A good monsoon results in a robust growth for the economy as a whole while a poor

monsoon leads to a sluggish growth 27

Farm credit is regulated by NABARD which is

the statutory apex agent for rural development in the subcontinent

India has many farm insurance companies that insure wheat fruit rice and rubber

farmers in the event of natural disasters or catastrophic crop failure under the supervision

of the Ministry of Agriculture One notable company that provides all of these insurance

policies is agriculture insurance company of India and it alone insures almost 20 million

farmers

Economic disparities in India

According to World Bank India Country Overview 2008 - Lagging states need

to bring more jobs to their people by creating an attractive investment destination

Reforming cumbersome regulatory procedures improving rural connectivity establishing

law and order creating a stable platform for natural resource investment that balances

business interests with social concerns and providing rural finance are important

One of the critical problems facing Indias economy is the sharp and growing

regional variations among Indias different states and territories in terms of per capita

income poverty availability of infrastructure and socio-economic development 28

54

Seven low-income states - Bihar Chhattisgarh Jharkhand Madhya Pradesh Orissa

Rajasthan and Uttar Pradesh - are home to more than half of Indias population 29

Between 1999 and 2008 the annualized growth rates for Gujarat (88) Haryana

(87) or Delhi (74) were much higher than for Bihar (51) Uttar Pradesh (44)

or Madhya Pradesh (35)27

Poverty rates in rural Orissa (43) and rural Bihar (40)

are some of the worst in the world On the other hand rural Haryana (57) and rural

Punjab (24) compare well with middle-income countries

34 Rural Marketing in Indian Economy

The concept of Rural Marketing in Indian Economy has always played an

influential role in the lives of people In India leaving out a few metropolitan cities all

the districts and industrial townships are connected with rural markets

The rural market in India is not a separate entity in itself and it is highly influenced by

the sociological and behavioral factors operating in the country The rural population in

India accounts for around 627 million which is exactly 743 percent of the total

population

The rural market in India brings in bigger revenues in the country as the rural

regions comprise of the maximum consumers in this country The rural market in Indian

economy generates almost more than half of the countrys income Rural marketing in

Indian economy can be classified under two broad categories These are

1 The market for consumer goods that comprise of both durable and non-durable goods

2 The market for agricultural inputs that include fertilizers pesticides seeds and so on

The concept of rural marketing in India is often been found to form ambiguity in the

minds of people who think rural marketing is all about agricultural marketing However

rural marketing determines the carrying out of business activities bringing in the flow of

goods from urban sectors to the rural regions of the country as well as the marketing of

various products manufactured by the non-agricultural workers from rural to urban areas

To be precise Rural Marketing in India Economy covers two broad sections namely

-Selling of agricultural items in the urban areas and Selling of manufactured products in

the rural regions

55

Some of the important features or characteristics of Rural Marketing in Indian Economy

are being listed below

With the initiation of various rural development programmes there have been an

upsurge of employment opportunities for the rural poor One of the biggest cause behind

the steady growth of rural market is that it is not exploited and also yet to be explored

The rural market in India is vast and scattered and offers a plethora of opportunities in

comparison to the urban sector It covers the maximum population and regions and

thereby the maximum number of consumers

The social status of the rural regions is precarious as the income level and literacy is

extremely low along with the range of traditional values and superstitious beliefs that

have always been a major impediment in the progression of this sector

The steps taken by the Government of India to initiate proper irrigation

infrastructural developments prevention of flood grants for fertilizers and various

schemes to cut down the poverty line have improved the condition of the rural masseshellip

35 Rural Marketing in Changed Scenario

The rural scene is now undergoing a sea-change resulting from the multi-pronged

activities undertaken for the overall development of rural areas There have been

significant improvements in the rural sector in respect of agricultural production spread of

education banking facilities electrification transportation communication etc All these

changes have led to the creation of general awareness for achieving a new and better style

of living With the increased purchasing power accessed purchasing Power access to

communication and awareness about modern life styles the rural sector needs a better

marketing thrust The recent economic policy initiatives of the government have resulted

in increased investments in the corporate sector by domestic as well as overseas investor s

The growth of the corporate sector means increased production and this in turn requires

identification and penetration into high growth potential markets In this contest rural

markets have good prospects for most of the goods and ser vices of this liberalized

economy It also indicates that the twenty first century is going to see the full blossoming

56

of the Indian rural market (Chahal and Pal 1997 p 223)

As change came in 1991 when government took a series of bold initiatives to take

the economy away from controls The programme included for reaching trade fiscal

marketing and industrial policy measures with a major thrust on improvement of

competitive efficiency of Indian industries by utilizing foreign investment and technology

to a much greater degree than in the past Moreover the new reform measures ended the

regime of licensing and controls and made the industry virtually independent significantly

the new policy permitted the free import and export of virtually all products with some

exceptions

Imports of capital goods and raw materials were made more liberal Introduction

of automatic approvals of foreign technology agreements and foreign investment

restructuring of public sector under takings and the thrust on export were other measures

announced by the government with a view to improve the competitiveness of Indian

industries and promotion of exports In short determining the countries future growth and

development for the first time the government came out in favor of outward oriented trade

and industrial policies where export marketing was given prime importance Under the

new policy industries could expand modernize diversify and internationalize their

operations with greater freedom (Neelmegham 2000 p 5) This changed economic scenario

gave future stretch out to tap the so far largely untapped rural sector markets Economic

reforms have enabled GDP to grow at an average annual rate of about 64 per cent

between 1992 -93k and 1999 - 2000 Consumption too has gone up especially the

consumption of manufactured FMCGs (Fast moving Consumer Goods) for 1997-98

market size of a basket of 20 consumer expendable goods in the household sector is

estimated at Rs 801 billion (at current prices) consumption of the same commodities was

estimated to be Rs 371 billion in 1992 - 93 showing an average annual growth of 167 per

cent These figures also indicate that per household consumption expenditure on the goods

considered has doubled from Rs 2387k in 1992- 93 to Rs 4736 in 1997- 98 Rural India in

particular with a share of over 55 [per cent in total consumption of FMCGs has also

witnessed a growth of about 14 percent per annum during the same period This seems to

be a fairly good growth by any standard (Brahmankarnd Gupta 2000) Indian market is

undergoing a significant metamorphosis because of economic liberalization and

57

globalization Many players (Both national and global) are trying to capture the urban

market of our country but this market has already reached a saturation level and it is

extremely difficult to tap the urban market with high profit margin It is also not easy to

penetrate profitably into the export market because of fierce competition in export market

a firm has to face challenges from MNClsquos other foreign companies and domestic firms of

the concerned export market in this cut throat competition everybodys market share will

shrink as every one in chasing the same market (Dey Adhikari 1998 p 1) this realization is

forcing companies to go rural

The 1990s have ushered in far reaching changes that influence the customers

profile and therefore the market Literacy levels have risen (especially female literacy)

The average size of the household is reducing nuclear families are increasing This

development has particular significance fro durable goods marketers for instance instead

of a large refrigerator for a joint family a household may now need two or three smaller

refrigerators Also sizeable youth segment is emerging with its own income or pocket

money which marketers need to recognized

(Godrej 1993 pp 155) Rural India is also in the way of change perhaps in an

even more significant manner There has been a boom in those markets fuelled by the

penetration of media vast improvement in infrastructure facilities like roads and shops

telecom connectivity successive good monsoons and high government spending As a

result the rural component is now bigger than the urban in many product categories

Gone are the days when a rural consumer went to a nearby city to buy branded

products and ser vices Time was when only a select household consumed branded

goods be it tea or jeans There were days when big companies flocked to rural markets to

establish their brands Today rural markets are critical for every marketer - be it for a

branded shampoo or an automobile (Kannan 2001) Lifestyles and habits of rural people

are changing Yesterdays luxuries are becoming todays necessities There is a boom of

(both domestic and foreign) brands of products

The Government Exercise in the last few decades

The Government of India has designed and implemented several issue- based

programmes aimed at rural development The developmental activities under the Ministry

58

of Rural Development cover infrastructure development and reforms in the agricultural

sector the non-farm sector and the social sector Within these sectors issues related to

production productivity skills access to institutional credit marketing of produce or

services education health social restructuring empowerment of women and other

socially deprived section etc have been the areas of focus for the policies

Table31 Government Exercise in the last few decades

Plan

Period Programmes

Years of

Induction

1 Community Development Programme

National Extension Scheme

1952

1955

2 Khadi and Village Industries

Multi purpose Tribal Development Block

Package Programme and Intensive Agriculture District

Development Programme

1957

1959

1960

1962

3 Applied Nutrition Programme

Intensive Agricultural Area Development Programme

HYV Seeds Programme

Farmers Training Education

Well Construction Programme

Rural Works Programme

Tribal Development Block

Rural Manpower Programme

Composite Programme for women and Pre school Going Children

1964

1966

1966

1966

1967

1968

1969

1969

1968

4 Drought Prone Area Programme (DPAP)

Crash Scheme for Rural Employment

Marginal farmers and Agricultural Labour Scheme (MFAL)

Small farmers Development Agency (SFDA)

Tribal Are Development Agency (TADA)

Intensive Rural Employment Programme (Pilot) (IREP)

Minimum Needs Programme (MNP)

1969

1970

1971

1971

1971

1972

1972

59

5 Hill Area Development Programme Special livestock

Production Programme (SLPP)

Food for work Programme (FWD)

Desert Development Programme (DDP)

Whole village Development programme (WWDP)

Training of Rural youth for self Employment (TRYSEM)

Integrated Rural Development Programme (IRDP)

1974

1975

1975

1977

1977

1979

1979

6 Rural landless Employment Guarantee Programme

(RLEGP) National Rural Employment Programme (NREP)

1981

1981

7 Development of Wormnet and Children in Rural Areas

(DWCRA) Jawahar Rojgar Yojana (JRY)

1985

1988

8 Scheme for Rural Artisans (all traditional artisans living below

rashtriya mahila Kosh Credit Fund for women)

Mahila Samridhi Yojana

Revamped Public Distribution Scheme (PRDS)

1992

1992

1993

Source- Government of India Web site

Although the per capita income in rural is less than half of urban the rural sector

already accounts for 53 per cent of FMCGs and 59 per cent of durables bought in India

However rural penetration and consumption levels for most product categories are much

lower than urban because of limited purchasing power with villagers Improved irrigation

facilities infrastructure better roads free trading in agri produce removal of excise duty

on tractors agri implements and the insurance scheme for farmers announced in the

Budget should all give a boost to the rural economy and generate a greater demand for

corporate products However to benefit from this new opportunity urban marketers will

have to gain a better understanding of rural lifestyles needs and aspirations and design

appropriate products Corporate will need to extend their distribution reach to service this

new segment living in six lakh old villages offer smaller packs at lower price points and

communicate in the local idiom to connect with rural audiences A rural India marketing

strategy will not work Corporate will have to not only think local but also act local

60

36 Theoretical Concept Rural markets are defined as those segments of overall market of any economy

which are distinct from the other types of markets like stock market commodity markets

or Labor economics Rural Markets constitute an important segment of overall economy

Marketing Mix

History

The idea of marketing mix was generated to Borden Neil H by a paragraph in a

research bulletin on the management of marketing costs written by my associate

Professor James Culliton (1948) In this study of manufacturers marketing costs he

described the business executive as a- decider an artist- a mixer of ingredients

who sometimes follows a recipe prepared by others sometimes prepares his own recipe

as he goes along sometimes adapts a recipe to the ingredients immediately available and

sometimes experiments with or invents ingredients no one else has tried He liked that

idea of calling marketing executive a mixer of ingredients one who is constantly

engaged in fashioning creatively a mix of marketing procedures and policies in his efforts

to produce a profitable enterprise

For many years previous to Cullitons cost study the wide variations in the

procedures and policies employed by managements of manufacturing firms in their

marketing programs and the correspondingly wide variation in the costs of these

marketing functions which Culliton aptly ascribed to the varied mixing of ingredients

had become increasingly evident as we had gathered marketing cases at the Harvard

Business School The marked differences in the patterns or formulae opound the marketing

programs not only were evident through facts disclosed in case histories but also were

reflected clearly in the figures of a cost study of food manufacturers made by the Harvard

Bureau of Business Research in 1929 The primary objective of this study was to

determine common figures of expenses for various marketing functions among food

manufacturing companies similar to the common cost figures which had been

determined in previous years for various kinds of retail and wholesale businesses In this

manufacturers study we were unable however with the data gathered to determine

common expense figures that had much significance as standards by which to guide

management such as had been possible in the studies of retail and wholesale trades

61

where the methods of operation tended toward uniformity Instead among food

manufacturers the ratios of sales devoted to the various functions of marketing such as

advertising personal selling packaging and so on were found to be widely divergent no

matter how we grouped our respondents Each respondent gave data that tended to

uniqueness

Cullitons study of marketing costs in 1947-48 was a second effort to find out

among other objectives whether a bigger sample and a more careful classification of

companies would produce evidence of operating uniformities that would give helpful

common expense figures But the result was the same as in early study there was wide

diversity in cost ratios among any classifications of firms which were set up and no

common figures were found that had much value This was true whether companies were

grouped according to similarity in product lines amount of sales territorial extent of

operations or other bases of classification

―The Marketing mix refers to the appointment of effort the combination the

designing and integration of the elements of marketing into a programme or mix which

on the basis of an appraisal of the market force will best achieve the objectives of an

enterprise at a given time 30

―The concept proposes that once markets are known marketing management can

mix the elements in proportion that will produce the most profitable marketing result It

assumes that the proportions of the mix will change as a market conditions change or the

companylsquos position in market change (McGraw Hill encyclopedia of professional

management 1978) There are always several combinations of marketing methods and

policies which can be adopted by a marketing manager in arriving at a marketing

strategy But there is always one optimum mix of them which leads to the most profitable

result with minimum cost

Jerome McCarthy (McCarthy J 1960) was the first person to suggest the four Ps

viz price promotion product and distribution which constitute the most common

variables used in constructing a marketing mix According to McCarthy the marketers

essentially have these four variables which they can use while crafting a marketing

strategy and writing a marketing plan In the long term all four of the mix variables can

62

be changed but in the short term it is difficult to modify the product or the distribution

channel

Another set of marketing mix variables were developed by Albert Frey (Frey A

1961) who classified the marketing variables into two categories the offering and

process variables The offering consists of the product service packaging brand and

price The process or method variables included advertising promotion sales

promotion personal selling publicity distribution channels marketing research strategy

formation and new product development

Recently Bernard Booms and Mary Bitner built a model consisting of seven Ps

(Booms B and Bitner M 1981) They added People to the list of existing variables in

order to recognize the importance of the human element in all aspects of marketing They

added process to reflect the fact that services unlike physical products are experienced

as a process at the time that they are purchased

The Marketing mix denotes a combination of various elements which in their

totality constitute a firms ―marketing system These elements are- 4Plsquos Marketing Mix

is the set of controllable marketing tools that firm uses to pursue its Marketing objectives

in the target market Marketing mix is the set of marketing tools that the firm uses to

pursue its marketing objectives in the target market

Product Mix

A clear understanding has to be obtained of the rural environment its limitations

and opportunities before effective marketing mix be formulated A sensitization to the

rural environment is absolutely vital to ensure effective implementation of strategies in

the framework of new paradigms that are emerging due to the transformations taking

place in Rural India This has to be furthered supported by an on-line monitoring

mechanism that enables timely mid-course fine tuning

The learning cycle becomes complete only when the knowledge and experience

gained from every implementation can be systematically transferred through effective

training and dissemination

63

The central decision in marketing mix strategy is product decision In the emergent

dynamic competitive environment multi-product firms are fighting hard to gain

commanding market through their product strategies It is through continuous design and

redesign of product mixes a company lays its way to success and fame

Product Strategy

Product strategy refers to the long-range competitive plan involving decisions on

products product line and product mix to make proper utilization of resources and achieve

marketing goals

Various strategies adopted at these levels are given in Table

Table 32 Product Strategies-an Overview

Level Strategy

Product Mix Width extension- New Product lines

Length extension- New product items

Depth extension- ndash new product variants

Product Line Stretchingndash Upward downward both ways line pruning -

line modernization

Product item Quality Features Design Brand and Package Augmentation

Product Mix Decision

Product mix is a set of all product lines and items offered by the company Product

line is a group of closely related products priced within a range and distributed the - some

channels to the same customer groups It has two dimensions Length and Depth

Length - It refers to the total number of items in the line

Depth - It is the total number of variants to product items

Length of Product line

Product item decision

Product or service is an offer made by marketer that has the ability to satisfy the

needs and wants of customer Products are physical and tangible The key consideration in

individual productser vice offer is developing of the product at three levels

1 Core product development

2 Tangible product development

3 Augmented product development

64

1 Core Product

Core product refers to the benefits which are specified by consumer needs What

is the consumer really buying Core product developer has to focus on the needs of

consumer Product is to be seen not from manufacturing point of view but from marketing

point of view Business is to be viewed as a customer satisfying process not a goods-

producing process Products are transient but basic needs of customer groups remain

Diagram 31 Levels of Product

Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty

A product that provides the important form utility and ensures performance of the

basic function is the core product The testing question therefore is

Is the product capable of fulfilling the needs of customer s

2 Tangible Product

When psychological needs are specified in physical terms product concept

becomes visible and operational Any product or service has five characteristics ie

Core

benefit

or

Services

Argumented

product Actual Product

Core

Product

65

Quality Features Styledesign Packaging and Branding

It is in these terms that a consumer expresses and expects benefits from a product to

satisfy his needs Accordingly marketers have to design and communicate productlsquo with

the above five Characteristics

3 Augmented Product

Marketer s should have vision to look at the specific needs (core products) of

consumers and also their related requirements He needs a broader view to have the whole

picture of the consumption c the consumer to woo him or her with the right offer It also

helps differentiate his offer with that of the competitors The holistic approach helps to

systematically differentiate the offer

Table 33 Components of an offer

Product related Services ndash related Channel

Quality Ordering

Design Style Delivery and credit Expertise

Features Installation Performance

Packaging Customer tracking Courtesy

Augmentation requires fortifying the product strategy with additional force drawn from

other Products as a result the product offers make buying and using a pleasant and

exciting experience

Packaging

Every product requires a package and label Packaging is providing a container or

wrapper for a product Packaging is done at three levels

1 Primary Package -It holds the product for example bottle

2 Secondary package -It holds the primary package for example Cardboard box

3 Shipping Package -It helps carry the packed products from one place to another for

example corrugated box

All products need shipping packaging as they are to be transported to different

places Some products need secondary packaging for example after-shave lotion hair

dyes toothpastes fairness creams toilet soaps etc Some products are sold with primary

66

packaging for example talcum powder hair oils edible oils beverages etc Therefore

marketer has to make primary packaging appealing in case of all products The secondary

package should be made attractive wherever necessary

Today we see a variety of packages in use They appeal consumers at three

different levels sensory emotional and rational Various considerations are necessary for

creating appealing packages at the three levels as given in Table below

Table 34 Levels of Appeal by Packages

S No Level Purpose

Package

Package

characteristics

Determinations

1 Sensory Attention Attractive

Distinctive

Visibility

Easy to identify

2 Emotional Interest

Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense

3 Rational Evaluation Informative

Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price

Through labeling or by presenting information on the package evaluation process

is made easy Packages are becoming interactive to permit easy evaluation by sight and

smell

Price Mix

Price Mix decisions have strategic importance in any enterprise Pricing governs

the very feasibility of any marketing programme because it is the only element in a

marketing mix accounting for demand and sales revenue Other elements are cost factors

Price is the only variable factor determining the revenues or income A variety of

67

economic and social objectives came into prominence in many pricing decisions We now

come to the most absorbing question of pricing

Economist defines price as the exchange value of a product or service always

expressed in money To the consumer the price is an agreement between seller and buyer

concerning what each is to receive Price is the mechanism or device for translating into

quantitative terms (Rupees and Paise) the perceived value of the product to the customer at

a point of time Price is defined as the amount charged for the product or service including

any warranties or guarantees delivery discounts services or other items that are part of

the conditions of sale and are not paid for separately To the buyer price is a package of

expectations and satisfactions Thus price must be equal to the total amount of benefits

(physical economic sociological and psychological benefits) To the seller it is a product

feature most welcome Pricing is equivalent to the total product offering This offering

includes a brand name a package product benefits service after sale delivery credit and

so on From the marketers point of view the price also covers the total market offering

ie the consumer is also purchasing the information through advertising sales promotion

and personal selling and distribution method that has been adopted The consumer gets

these values and also covers their costs We can now define price as the money value of a

product or service agreed upon in a market transaction We have a kind of price equation

where

In a competitive market economy price is determined by free play of demand and

supply The price will move forward or backward with changing supply and demand

conditions The going market price acts as basis for fixing the sale price Rarely an

individual seller can dishonor the current market price In a free market economy we have

freedom of contract freedom of enterprise free competition and right to private property

Price regulates business profits allocates the economic resources for optimum production

and distribution Thus price is the prime regulator of production distribution and

consumption of goods Economics revolves around pricing of resources Price influences

consumer purchase decisions It reflects purchasing power of currency It can determine

the general living standards In essence by and large every facet of our economic life is

directly or indirectly governed by pricing This is literally true in our money and credit

economy Pricing decisions interconnect marketing actions with the financial objectives of

68

the enterprise Pricing strategy determines the firms position in the market vis-a-vis its

rivals Marketing effectiveness of pricing policy and strategy should not suffer merely on

account of cost and financial criteria

Price is a powerful marketing instrument As a marketing weapon pr icing is the

big-gun However it must be used with great caution Therefore all marketing planners

must make accurate and planned pricing decisions

Diagram 32 Place of Price in the Marketing Strategy

OTHER BANKING

STRATEGIES PRICE STRATEGY

(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure

Developing the price structure on the basis of pricing policies and strategies is the

final step in price determination process The price structure will now define selling prices

for all products and permissible discounts and allowances to be given to middlemen as

well as various types of buyers Every marketer involved in price decision must take into

consideration the impact of both the controllable and uncontrollable variable when he is

called upon to develop pricing policies and procedures The price decision as it is affected

by all variables is shown in the model of pricing forces

1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69

Diagram 33 Model of pricing forces

After pinpointing the market estimating demand and discovering rivals prices

marketer can identify basic price alternatives Basic price is a realistic market price It

resembles an ideal price However it is only a starting point in the determination of actual

pricing structure

Pricing decisions are guided by overall organisation objectives A base price is

usually established and adjustments from that base price is made to ensure closer

correlation between the product of the fir m and consumer wants and desires ie

matching the product offering with the expected bundle of satisfactions (perceived value

by consumer) The figure given below indicates number of choices in setting the base

70

price A base price acts as a reference pr ice It is a price from which actual prices can be

determined by adding extras and deducting discounts The actual prices reflect

differentials from the base price because of market structure geographical location

competitive conditions and the terms of individual transactions Comments

Distribution Mix

A key decision among the four Ps of marketing managers is distribution

Distribution decides the manner in which product and services are made available to the

target customers It involves the bridging of place utility gaps between manufacturer and

customers The design of physical distribution referred to logistics and supply chain

management and trade channels of distribution are the major components in distribution

The link between manufacturers and customers is the channel of distribution It

consists of producer consumer and any intermediary organizations that are aligned to

provide a means of transferring ownership (title) or possession of a product from producer

to consumer The characteristic features of distribution are

It was found in a primitive economy in which people realized the need for

specialization and exchange They understood that efficiency can be gained if one person

specializes in a certain activity such as hunting and another person specializes in a

different activity such as fishing or farming They exchanged one good for another to

satisfy their needs In a primitive economy distribution is straightforward in todaylsquos

global economy it is far more complex It is because of the distances variety of

supporting trade services and variety of needs of buyers

While manufacturing research engineering and field sales personnel represent

internal resources distribution represents a key external resource It is outcome of a

significant corporate commitment to a large numbers of independent organizations whose

business is distribution

Channels represent a set of interdependent relationships among intermediaries and

producer The channel facilitates forward flows (physical goods title of goods and

promotion offers) and back ward flows (ordering and payment) Some of these flows are

forward flows (physical transportation title and promotion) others are backward flows

(ordering and payment) and still others move in both directions (information finance and

risk taking)

71

Channel Structures

Channel structures are evolved based on the type of company products target

market segments and competition Three different channel structures are briefly explained

here

Table 35 Marketing systems

System Description Benefits

Vertical

marketing

system

Comprise producer wholesaler (s) and

retailer (s) acting as a unified system

Achieve economies through

their size bargaining power

and elimination of

duplicated services and

channel conflicts

Horizontal

marketing

system

Readiness or willingness of two or more

non-related companies to put together

resources to exploit an emerging market

opportunity

Economy of effort A

channel may become viable

and attractive eg Shakti

groups

Multi-

channel

marketing

system

Simultaneous use of different channels

Telemarketing and indirect distribution as

in the case of marketing of mobile phones

Efficient reach Wider

coverage

Channel types

One key question in channel decisions is- whether to go for indirect or direct

marketing

Direct to customers

Producer ndashgt Customer through

i own sales force without own branch net work

ii own sales force with own branch net work

iii Telemarketing

iv E- Channels

72

Indirect to customers

Because of the wide variety of channel arrangements that exist it is difficult to generalize

the structure of channels across all industries However distribution channels are usually

of two types

I Direct Marketing Channel (or Zero level)

This type of channel has no intermediaries In this distribution system the goods go from

the producer direct to the consumer eg Eureka-Forbes

Producer------------- Consumer

II Indirect marketing Channel

This may further be classified in the following categories

1 One-Level Channel

In this type of channel there is only one intermediary between producer and consumer

This intermediary may be a retailer or a distributor

Producer ------ Retailer -- --- --- - Consumer

If the intermediary is a distributor this type of channel is used for specialty products like

washing machines refrigerator s or industrial products

Producer -----Distributor ------- Consumer

2 Two-Level Channel

The type of channel has two intermediaries namely wholesalerdistributor and retailer

Producer --- Distributor --- Retailer------Consumer

3 Three ndash Level Channel

This type of channel has three intermediaries namely distributor wholesaler and retailer

This pattern is also used for convenience products

Producer --- ---- Wholesaler ----- Distributor-------Consumer------Retailer

4 Four ndash Level Channel

This type of channel has four intermediaries namely Agent Distributor wholesaler and

Retailer This channel is somehow similar to the previous two This type of channel is

used for consumer durable products also

Producer --- Distributor -- Wholesaler -----Agent --Retailer-----Consumer

Let us now draw distinctions between direct and indirect marketing efforts

73

Logistics Management

Logistics management is one of the time and cost saving strategies of business

organizations It is now being related to supply chain management Supply chain has

become important to companies to gain competitive advantage in terms of speed and cost

of delivery of products and services to customers Marketer s therefore should have a good

understanding of the goals of logistics and value chains

Recently the concept of integrated market logistics system is referred to as supply

chain management which is broader in it s scope It is concerned with all the flows

starting from supplier to manufacturer to customer As such integrated market logistics

system is a subset of supply chain management of a firm

Responsive logistical ser vice is very important from the point of view of

customers as well as competition It enhances customer satisfaction and creates the

opportunity for closer and more profitable buyer-seller relationships It is often ranked by

buyers next to ―quality as a criterion for selecting a vendor

1 Place factor

Logistics creates place utilities to consumers Companies lose their customers

when they fail to supply goods at the right place Many products fail in the competitive

market when they are not available at the points of purchase at the right time

2 Time factor

An important utility required by customers is time utility If products or services

are not available at the right time the customers look for substitutes If the failure to

supply is frequent customers shift their preferences to the timely available product though

it is less satisfying

3 Cost factor

Experts believe that substantial savings can be obtained in physical distribution

area For this reason it has been described as the lost frontier for cost economieslsquo

Physical distribution decisions when un-coordinated result in high cost There is a need to

make use of modern operations research tools and computer programming for

coordinating inventory levels transportation modes and plant warehouse and store

locations

74

4 Promotion factor

It is a potent promo tool in competitive marketing Companies can attract

additional customers by offering better service or lower price through improvements in

physical distribution

The objective of physical distribution is getting the right goods to the right places

at the right time for the least cost Evidently this involves a trade- off between customer

service and cost

Optimization of each of the components (subsystems) - order processing

warehousing inventory and transportation may appear to be the right answer But it is not

correct Physical distribution decisions must aim at optimization of total system and not

the sub optimization at the subsystem levels ie order processing warehousing inventory

and transportation

Table 36 Elements of Logistics Service

Elements Description

Delivery time The time from the creation of an order to the fulfillment and delivery

of that order encompasses both order- processing time and delivery or

transportation time

Delivery

reliability

The most frequently used measure of logistics service delivery

reliability focuses on the capability of having products available to

meet customer demand

Order accuracy The degree to which items received conforms to the specification of

the order The key dimension is the incidence of orders shipped

complete and without error

Information

access

The firmlsquos ability to respond to inquires about order status and product

availability

Damage A measure of the physical conditions of the product when received by

the buyer

75

Ease of doing

business

A range of factors including the ease with which orders returns

credits billing and adjustments are handled

Value-added Such features as packaging which facilitates customer services

handling or other services such as pre pricing and drop shipments

Source- Jonathon L S Byrnes William C Copacino and Peter Metz ―Forge Service into a Weapon with

Logistics Transportation and Distribution Presidential Issue 28 (September 1987) p46

Major decision issues in Distribution are

a Order Processing The first phase in physical distribution is order - shipping - billing

cycle A customer order initiates several steps

1 Order department prepares multi copy invoices and dispatches them to various

departments

2 Order is checked with available stock Items out of stock are back ordered

3 Items are shipped Shipped items are accompanied by shipping and billing documents

with copies going to various departments

The whole process is now expedited with the help of computers by warehousing

b Ware housing A storage function is necessary because the production will be more

than customer orders in general Striking a balance between customer service standards

and distribution costs marketers has to decide on a desirable number of stocking locations

depending upon the markets the firm intends to serve choose the type of warehouses

c Inventory Inventory management requires decisions relating to

1) Level of stock ndash Determining optimum order quantity

2) Time of ordering ndash Reorder point

3) Minimum stock level to meet emergencies ndash safety stock

Today just-in-time production practices and product customization are changing the

inventory planning practices

d) Transportation Marketers have to make careful choice of transportation mode and

organizations In choosing a transportation mode for a particular product shippers

consider such criteria as Speed Frequency Dependability Capability Availability and

Cost

76

Supply Chain

A supply chain consists of all parties involved directly or indirectly in fulfilling a

customer request A typical supply chain may involve a variety of stages These supply

chain stages include Customers Retailers Wholesalers Distributors Manufacturers

Raw material suppliers

The appropriate design of the supply chain and the number of stages will depend

on both the customerlsquos needs and the roles of the stages involved The objective of every

supply chain is to maximize the overall value generated Today companies are giving

LandSCM due importance because of two reasons cost control and retaining markets

And both these factors are crucial to defending bottom lines

Promotion Mix

Promotion is a communication with an additional element of persuasion to accept

ideas products services and hence persuasive communication becomes the heart of

promotion the fourth element of marketing mix In essence promotion is the spark plug

of our marketing mix and an important marketing strategy People must know that the

right product at the right price is available at the right place It is said that in a competitive

market without promotion nothing can be sold In marketing effective communication is

absolutely necessary even though you have a superb product best package and also you

offer a fair price People will not buy your product if they have never heard of it and they

are simply unaware of its existence

Essentially promotion is persuasive communication to inform potential customers

of the existence of products to persuade and convince them that those products have want

satisfying capabilities Consumers really speaking buy a bundle of expectations (a package

of utilities) to satisfy their economic psycho- social wants and desires The promotion mix

includes four ingredients viz 1 advertising 2 publicity 3 personal selling and 4 all

forms of sales promotion All for ms of promotion try to influence consumerlsquos attitudes

beliefs ways of living or life style values and preferences towards a company and its

products and thereby influence his her behaviour

77

1 Advertising

It is defined as any paid for m of non-personal presentation and promotion of

ideas goods and services by an identified sponsor It is impersonal salesmanship for mass

selling a means of mass communication

2 Publicity

It is non-personal stimulation of demand for a product service or a business unit

by placing commercially significant news about it in a publication or obtaining favorable

presentation of it upon radio television or stage that is not paid for by the sponsor

3 Personal Selling

It is the best means of oral and face- to-face communication and presentation with

the prospect for the purpose of making sales There may be one prospect or a number of

prospects in the personal conversation

4 Sales Promotion

It covers those marketing activities other than advertising publicity and personal

selling that stimulate consumer purchasing and dealer effectiveness Such activities are

displays shows exhibitions demonstrations and many other non-routine selling efforts at

the point of purchase Sales promotion tries to complement the other means of promotion

given above All kinds of promotion play the role of communication channels between the

marketer (the source and the sender of message) and the consumer (the receiver of the

message) Publicity is more effective in the awareness stage Advertising gradually

becomes less and less effective over a time span Hence reminder advertisement is

necessary Personal selling becomes more and more effective as interpersonal interaction

assumes increasing importance Closing of sales needs not only personal selling but also

sales promotion tools at the point of purchase in order to provide additional incentives for

buyers action

Promotion Strategy

Strategy lays down the broad principles by which a company hopes to secure an

advantage over competitors exhibit attractiveness to buyers and lead to full exploitation

of company resources When marketers resort to promotion or persuasive communication

in marketing we have a kind of the promotion square

78

The promotional strategy also depends on the channel or route through which

products of the firm flow to consumer s There are pull and push strategies in promotion

Pull strategies depend upon mass communication Products are literally pulled by buyers

through the channels on the basis of mass promotional efforts In a pull strategy the

product is pulled through the channel by creating end-user demand Customers force retail

shops to stock those mass-promoted products In turn retailers demand the highly

advertised product from wholesalers The firms having well-known brands can exercise

control over channels through pull promotion strategies Personal salesmanship plays a

secondary role in pull promotion Marketer relies on intensive distribution Dealer margins

are also lower in pull promotion

Diagram 34 Push Strategy

Diagram 35 Pull Strategy

MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN

MANUFACTURER WHOLESALER RETAILER CONSUMER

RETAILERS

SALESMAN

ADVERTISING AND SALES

CONSUMER RETAILER WHOLESALER MANUFACTURER

79

Diagram 36 Push Pull Strategy

A pull strategy is also called a suction strategy Extensive and heavy use of

advertising and sales promotion would be necessary to generate consumer demand There

is less emphasis on personal selling at all stages of the marketing channel Small firms are

unable to depend entirely on advertising and sales promotion because large investment is

involved due to emphasis of advertising and sales promotion A push strategy is called a

pressure strategy It places heavy emphasis on personal selling Industrial marketing

strategies are mostly the push type strategies relying primarily on personal selling In the

sale of medical products and in life insurance marketers have to use large number of

sales-people to call on physicians and prospects for life insurance In push type promotion

personal selling expenses are considerable and dealer margin is also higher In push type

promotion after-sale service is also important In push type promotion marketers rely on

selective distribution Push strategy can be successfully used when 1 we have a high

quality product with unique selling points 2 we have a high- priced product and 3 we

can offer adequate incentives (financial) to middlemen and their salesmen Most consumer

goods manufacturers generally employ a push-pull (combination) strategy to sell their

products The ratio of pull to push may differ according to the requirements of market

situation Salesmen are used to push the goods through the marketing channel while

80

advertising and sales promotion will support personal selling to accelerate sales Thus all

tools of promotion work together

Once the marketing plan is ready we can develop a total promotion programme to

approach the target audiences Budget for each element of promotion is prepared

Promotion objectives must be set before we decide on message contents layout and

delivery of message Contents and layout decisions are based on strengths and weaknesses

of the various media vehicles Delivery decisions are based on the needs of carrying

particular types of messages Promotion objectives message design message delivery and

promotion budget are the constituents of promotion programme All these are highly inter-

related decision areas

When the promotion budget is fixed by the top management all decisions on

promotion programme must be within that budget If the promotion budget is not so fixed

promotion programme will be designed to support the marketing plan The promotion

budget to implement marketing plan will be approved by top management

37 Reference

1 Monier-Williams (1976) and Mujmdar and Pusalkar (eds) (1951)

2 Ryotwari This classification was recognized by Mark in his easy on the future of

British rule in India where he identified a zamindareelsquo and rytowarilsquo system villages

were historically identified by the British into the joint type as as found in the NWFP

where land was held by a proprietary body called a bhaichara or brotherhood (smith

1996) the rytowari was found in the greater part of India and the individual cultivator

was responsible for revenue

3 CIA - The World Factbook - Rank Order - GDP (purchasing power parity) Ciagov

2009-03-05 https wwwciagovlibrarypublications Retrieved on 2009-03-13

4 Economic survey of India 2007 Policy Brief (PDF) OECD http

wwwoecdorgdataoecd 175239452196pdf Retrieved on 2009-06-21

5 The India Report (PDF) Astaire Research http wwwukibccom ukindia2files

India60pdf Retrieved on 2009-06-21

81

6Indialsquos Rising Growth Potential (PDF) Goldman Sachs 2007 http

wwwusindiafriendshipnetviewpoints1Indias_Rising_Growth_Potentialpdf Retrieved

on 2009-06-21

7 A special report on India An elephant not a tiger The Economist 11 December

2008 http wwweconomistcomspecialreportsdisplayStorycfmstory_id=12749735

8 Country Profile India (PDF) Library of Congress - Federal Research Division

December 2004 http lcweb2locgovfrdcsprofilesIndiapdf Retrieved on 2007-06-24

9 Nehru Jawaharlal (1946) Discovery of India Penguin Books ISBN 0-14-303103-1

10 Kumar Dharma (Ed) (1982) The Cambridge Economic History of India (Volume 2)

c 1757 - c 1970 Penguin Books p 519

11 Datt Ruddar and Sundharam KPM (2005) 2 Indian Economy SChand pp 15ndash

16 ISBN 81-219-0298-3

12 Sankaran S (1994) 3 Indian Economy Problems Policies and Development

Margham Publications p 50 ISBN

13 Kumar Dharma (Ed) 4 The Cambridge Economic History of India (Volume 2)

p 422

14 ―Economy of Mughal Empire Bombay Times (Times of India) 2004-08-17


pp 32ndash35

16 Of Oxford economics empire and freedom The Hindu October 2 2005 http

wwwhinducom20050710stories2005071002301000htm

17 Williamson John and Zagha Roberto (2002) (PDF) From the Hindu Rate of Growth

to the Hindu Rate of Reform Working Paper No 144 Center for research on economic

development and policy reform http scidstanfordedupdfcredpr144pdf

18 Roy Tirthankar (2000) 1 The Economic History of India Oxford University Press

p 1 ISBN 0-19-565154-5

19 Roy Tirthankar (2000) 1 The Economic History of India Oxford University

Press p 1 ISBN 0-19-565154-5

20 Sam Staley (2006) The Rise and Fall of Indian Socialism Why India embraced

economic reform http wwwreasoncomnewsshow36682html

21 Street Hawking Promise Jobs in Future The Times of India 2001-11-25

82

22 Cameron John and Ndhlovu P Tidings (2001) (PDF) Cultural Influences on

Economic Thought in India Resistance to diffusion of neo-classical economics and the

principles of Hinduism Archived from the original on 2006-08-23 http

webarchiveorgweb20060823161225http

wwweconomicissuesorgarchivepdfs5v6p2PDF

23 Milton Friedman on the NehruMahalanobis Plan http

wwwindiapolicyorgdebateNotesfopinionhtml Retrieved on 2005-07-16

24 Ghosh Arunabha (2004-06-01) (PDF) Indias pathway trough economic crisis

Global Economic Governance Programme GEG Working Paper 200406 http

wwwglobaleconomicgovernanceorg

25 Grammaticas Damian Indian economy to overtake UK BBC News http

newsbbccouk1hiworldsouth_asia6294409stm Retrieved on 2007-01-26

26 India Country Overview 2008 World Bank 2008 http wwwworldbankorgin

27 Sankaran S 28 Indian Economy - Problems Policies and Development pp 492ndash

493

28 Datt Ruddar and Sundharam KPM 27 Indian Economy pp 471ndash472

29 A special report on India - Ruled by Lakshmi The Economist 11 December 2008

http wwweconomistcom

30

The concept of ―Marketing Mixlsquo in Science of Marketing Journal- 1965) George R

Terry

41

3 REVIEW OF LITERATURE

31 Introduction

India is in the second largest in volume of output in agriculture sector Certain

connected sectors of the agricultural sector have played a major role in the development

of the Indian economy by providing employment to a number of people in the Dairy

Forestry Fishing Poultry and Medico herbs industries Production volume has gone up in

Indian agriculture at a consistent rate since the 1950s Much of this improvement can be

credited to the various five-year plans that were instituted for the development of Indian

agriculture Developments in irrigation processes as well as various modern technologies

used have contributed to the overall improvement of agricultural processes

Substantial amounts of research and development have been carried out in the

agricultural sphere in India by organizations such as the Indian Agricultural Research

Institute the Indian Agricultural Research Statistics Institute and the Indian Council of

Agricultural Research Result of all Now India is rated as one of the top economies in the

world in terms of the purchasing power parity of the gross domestic product

32 Indian Village System

There is no village in India however mean that has not a rich stala- purana or

legendary history of its own - Raja Rao Kanthapura

At the edge of the city begins the great ocean of Indialsquos villages ndash Shrilal Shukl

Rag Darbari

The village in India it is believed epitomized essence of Indian civilization as it

is considered a repository of traditional mores and folkways A historical review of the

village as a community or of village studies has been touched upon briefly here

The village from the earliest times to the nineteenth Century

Studies in social evaluation have shown how nomadism was given up for village

life once settled agriculture became a way of life In India the village (gram) finds

mention in ancient texts and latter epics It is distinguished from the city (nagar) and the

town the fortress (pur) while all three stand in opposition to habitation of recluses in the

forests (aranta) City life was not a major feature of the Vedic Age as the economy was

mainly pastoral Villages were however ubiquitous According to Basham the Indian

42
































43
































44

































45
































46
































47











33 Rural Economy



basis3









127







48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

42
































43
































44

































45
































46
































47











33 Rural Economy



basis3









127







48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

43
































44

































45
































46
































47











33 Rural Economy



basis3









127







48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

44

































45
































46
































47











33 Rural Economy



basis3









127







48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

45
































46
































47











33 Rural Economy



basis3









127







48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

46
































47











33 Rural Economy



basis3









127







48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

47











33 Rural Economy



basis3









127







48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

48






i Pre-colonial







Silver coin










services 11









49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

49
















ii Colonial
















50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

50












with industrial

















Five-Year





51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

51

















Raj












52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

52


sectors[46]




























53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

53







small land holdings













farmers










54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

54
















population














the rural regions

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

55





























56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

56









exceptions























57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

57































58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

58







Plan

Period Programmes

Years of

Induction



1952

1955





1957

1959

1960

1962



HYV Seeds Programme







1964

1966

1966

1966

1967

1968

1969

1969

1968








1969

1970

1971

1971

1971

1972

1972

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

59








1974

1975

1975

1977

1977

1979

1979



1981

1981



1985

1988





1992

1992

1993















60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

60




Marketing Mix

History


























61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

61





uniqueness


























62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

62


channel

















Product Mix










63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

63





Product Strategy



marketing goals



Level Strategy





line modernization
















64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

64

1 Core Product







Installation

Packaging

Brand Features

Name

Delivery After

And Sale

Credit Service

Quality Styling

Warranty




2 Tangible Product



Core

benefit

or

Services

Argumented


Core

Product

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

65





3 Augmented Product








Quality Ordering






exciting experience

Packaging










66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

66








S No Level Purpose

Package

Package

characteristics

Determinations


Distinctive

Visibility

Easy to identify


Desire

Adoptability

Compatibility

Communicability

Easy to carry

Easy to use

Easy to store

Attractive to reuse

Easy to dispense


Interactive

Preservative

Economical

Easy to know

Easy to store

Good to reuse

Fair price



smell

Price Mix





67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

67



















where













68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

68








OTHER BANKING


(a)

COST

PRICE

RELATIONSHIP

REVENUES=UNIT

PRICE

MULTIPLIED

(b) BY VOLUME OF

SALES

PRICE REVENUES

RELATIONSHIP

Price Structure








1 PRODUCT

2 DISTRIBUTION

3 ADVERTISING

4 PERSONAL SELLING

5 SALES PROMOTION

PRICE

REVENUE

PRICE

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

69





pricing structure






70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

70





Distribution Mix


























risk taking)

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

71

Channel Structures



here



Vertical

marketing

system





and elimination of


channel conflicts

Horizontal

marketing

system




opportunity

Economy of effort A



groups

Multi-

channel

marketing

system





coverage

Channel types


marketing

Direct to customers




iii Telemarketing

iv E- Channels

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

72




of two types







1 One-Level Channel







2 Two-Level Channel













73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

73















1 Place factor




2 Time factor





3 Cost factor






locations

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

74

4 Promotion factor






service and cost





and transportation





transportation time

Delivery

reliability







Information

access


availability


the buyer

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

75

Ease of doing

business











departments


















Cost

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

76

Supply Chain










Promotion Mix


















77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

77

1 Advertising




2 Publicity




3 Personal Selling




4 Sales Promotion












buyers action

Promotion Strategy





78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

78













MANUFACTURERlsquoS

SALESMAN

WHOLESALERlsquoS

SALESMAN


RETAILERS

SALESMAN



79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

79



















80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

80















37 Reference














81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

81



on 2009-06-21









16 ISBN 81-219-0298-3




p 422



pp 32ndash35







p 1 ISBN 0-19-565154-5


Press p 1 ISBN 0-19-565154-5




82















493




30


Terry

82















493




30


Terry

review of literature - shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/2485/11/11_chapter...

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